.
Jibrin said the probe became inevitable for the All Progressives Congress (APC) administration to block leakages both in the oil and non-oil sectors to ensure the N6.08 trillion 2016 budget is sufficiently funded.
“One very important aspect that swallows a large chunk of the money in the budget is the cash call and production costs. Many people take their eyes away from production costs, but it is critical because, every year, we pay an average of N1 trillion as cost of production.
“It is important that this time around, we sit with relevant authorities in the oil and gas sector to see the details of this production cost, to ensure the country is not just being short-changed and we are just mopping up a lot of money from the first line charge to give to our foreign partners.”
Against a backdrop of the continued slide in global oil price, the House has commenced action towards reducing the oil benchmark price for the 2016 budget, it emerged yesterday.
The National Assembly approved the 2016-2018 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) with oil revenue based on a benchmark of $38 per barrel and also, pegged exchange rate at N197 to $1. The MTEF/FSP is the three-year fiscal plan from where the nation’s annual budget is extracted.
Speaking with newsmen, Jibrin said the House has recognised the need to peg the benchmark in response to happenings in the international oil market.
He said the Appropriation Committee and the Finance Committee would soon meet to set the price, which will be used as benchmark in the final document to be submitted to the House on February 25.
Meanwhile, the Committee on Aviation yesterday adjourned the Ministry of Aviation and its agencies’ budget defence when it got reports of the Bristow helicopter crash in Lagos State. Chairperson of the committee, Nkiru Onyejeocha said the postponement was to enable the panel monitor rescue operations.
Culled from The Sun
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